THE KING OF FRUITS Durian Plantation Ownership Opportunity - Growing Your Future - Plantations International

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THE KING OF FRUITS Durian Plantation Ownership Opportunity - Growing Your Future - Plantations International
THE KING
OF FRUITS
Durian Plantation
Ownership Opportunity

    www.durianharvests.com
       Growing Your Future
        www.DurianHarvests.com
     Growing     Your Future
THE KING OF FRUITS Durian Plantation Ownership Opportunity - Growing Your Future - Plantations International
Durian Harvests
  TABLE OF CONTENTS
Welcome to Durian Harvests                    3
Durian, “The King of Fruits”                  4
Introducing the Musang King                   6
Durian Product Categories                     9
The Global Durian Market                      11
Durian Demand in China                        12
Forestry as an Asset Class                    17
Harvest Yield Projections & Outlook           19
Learning Resources                            23
Why Invest in Malaysia                        25
About Plantations International               27
Top 10 Most Expensive Fruits                  29
Corporate Business Solutions                  32
                 www.durianharvests.com
                info@durianharvests.com
               MK Durian Harvests Sdn. Bhd.
                Company No.: 1287972-K

   Secure your family’s future by owning
      your own fully managed Durian
          Plantation in Malaysia!

                                                  2
THE KING OF FRUITS Durian Plantation Ownership Opportunity - Growing Your Future - Plantations International
Durian Harvests
  WELCOME TO DURIAN HARVESTS
MK Durian Harvests Sdn. Bhd. “Durian Harvests” is a
Malaysian based company that specializes in growing the
Musang King Durian on its plantations In Johor, Malaysia.
The Company’s primary focus is on supplying the highly
sought after Malaysian Musang King Durian to China and
Hong Kong, the world’s fastest growing Durian markets.
Durian Harvests is part of the Plantations International
group of companies, a multinational plantation and farm
management company whose specialty is in providing
sustainable agricultural, forestry and agroforestry
management services to its clients.

                                                        3
THE KING OF FRUITS Durian Plantation Ownership Opportunity - Growing Your Future - Plantations International
Durian Harvests
   DURIAN, "THE KING OF FRUITS”
 Durian is regarded by many people in Southeast Asia as
 “The King of Fruits”. The fruit is known for its thorn
 covering, unique taste and distinctive aroma. Considered a
 delicacy across Asia its appeal has been growing
 enormously with new Durian based products continuously
 being developed. Major global companies such as Nestle
 and McDonalds have all released Durian products to
 capture this growing market.
 Although relatively unknown globally, demand for Durian
 has been rising substantially with global trade in value
 growing 26% Annually between 2010-2016.

  In China, there are only two things they
queue for — iPhone’s and Malaysian Durian
                                Ahmad Shabery Cheek
                                Malaysia’s Minister of Agriculture

                                                                 4
THE KING OF FRUITS Durian Plantation Ownership Opportunity - Growing Your Future - Plantations International
Durian Harvests
     WORLD LEADERS ENJOY DURIAN

Barack Obama (Ex President     Hsien Loong (PM of Singapore)
of the U.S.) presented with    receiving a painting as a gift by Najib
Durian during his visit to     Razak (Ex PM of Malaysia) of both of
Malaysia                       them eating Durian

The Duke and Duchess of        Shinzo Abe (PM of Japan) being
Cambridge, Prince William      gifted Durian by Rodrigo Duterte
and Kate being introduced to   (President of the Philippines)
Durian with Najib Razak (Ex
PM of Malaysia)

                                                                  5
THE KING OF FRUITS Durian Plantation Ownership Opportunity - Growing Your Future - Plantations International
Durian Harvests
  INTRODUCING MUSANG KING
Durian Harvests specializes in Malaysia’s Musang King Durian
variety, also known as Mao Shan Wang or D197. It is the most
sought after and expensive Durian variety due to its appealing
texture and flavour.
Musang King prices have recently begun skyrocketing due to
low supply and strong demand. Prices in Malaysia are up over
200% since 2014, with prices in China a staggering 165
SGD/KG or 350% more than in Malaysia.
Export demand for Musang King has been so immense that it
has resulted in a unique market opportunity for Malaysia and
Musang King plantation owners. The Malaysian government
noticing the lucrative potential of Musang King has responded
by making it a key economic focus.
For example, Malaysia has created annual festivals, promoted
domestic production and even created an entirely new tourism
sector catered towards Durian travel. World renowned hotels
including the Shangri-La have all begun offering durian travel
and dining packages to meet the incredible rising demand.

                                                             6
THE KING OF FRUITS Durian Plantation Ownership Opportunity - Growing Your Future - Plantations International
DURIAN NEWS HEADLINES

“A Durian economy?                         “The King of fruits is
Malaysia is banking on it”                 skyrocketing in China”
                         (Dec. 30, 2017)                      (Nov. 29, 2017)

“Demand for Malaysian                      “Durians just as popular
Durians in China may                       as iPhone X in China, says
mean fewer, costlier fruit                 Malaysian minister”
for Singapore”     (Apr. 17, 2017)
                                                            (Nov. 09, 2017)

“Malaysia’s Musang King                    “How China’s soaring
Durian festival a roaring                  appetite for Malaysian
success; to be held                        Durians is causing a spike
annually”          (Nov. 26, 2017)
                                           in demand in Hong Kong”
                                                              (Dec. 03, 2017)

“Durian price reach 33                     “How China’s growing
year high”                                 Durian obsession is
                       (Jan. 04, 2018)
                                           leading to a wealth of new
                                           product development”
                                                              (Jan. 04, 2018)

                                                                              7
THE KING OF FRUITS Durian Plantation Ownership Opportunity - Growing Your Future - Plantations International
Durian Harvests
  MUSANG KING PRICES
Musang King prices have risen substantially in the last
decade and are expected to keep rising due to limited
availability and rapidly rising consumption levels in China.
Current Market Prices Range from SGD 35-165 per KG.
Additional Durian plantations are urgently needed to meet
the growing demands of the market.

                                    Musang King Prices

                                  China
                                  165 SGD/KG
                                  350%+ More Expensive than in Malaysia

                                                         Hong Kong
                                                         69 SGD/KG
                                                         100%+ Price Increase since 2014

                                                                                     Singapore
                                                                                     35 SGD/KG
                                                                                     200%+ Price Increase
                                                                                     since 2014

       Note: Prices above are accurate at the time of this writing. Prices however can fluctuate due to seasonality.

                                                                                                                       8
THE KING OF FRUITS Durian Plantation Ownership Opportunity - Growing Your Future - Plantations International
Durian Harvests
    DURIAN PRODUCT CATEGORIES
New durian products are constantly being created to
capture rising demand. Although Durian’s share of
desserts, snacks and beverages is unknown, combined they
are worth over 380 SGD Billion Annually in Asia alone.

 Raw Durian Fruit                                                 Durian Snacks

    Fresh, Frozen & Dry                                             Chips, Crackers
                                                                       & Candy

  19 SGD Billion Annually                                     28 SGD Billion Annually

   Durian Desserts                                           Durian Beverages
                                                                       Coffee, Tea
 Ice Cream, Cake, Jam
                                                                       Milk & Juice

48 SGD Billion Annually                                      304 SGD Billion Annually

* The SGD values stated for the above snack, dessert and beverage categories refer to the entire product
category. Durian’s share of these categories is unknown but they are key Durian product categories.

                                                                                                           9
THE KING OF FRUITS Durian Plantation Ownership Opportunity - Growing Your Future - Plantations International
Durian Harvests
  TOP DURIAN RETAILERS
Durian is one of the most versatile fruits in the world with a
large and ever expanding number of uses. Demand has
grown enormously recently with new Durian based
products continuously being developed in an effort to meet
customer demand.
Regional and global F&B companies such as Nestle and fast
food giants such as McDonalds have all released Durian
based products.

      Durian Ice Cream                Durian Tarts and
                                         Ice Cream

Durian McFlurry’s, Sundae’s,         Durian Flavouring
 Hotcake’s and Ice Cream             and Moon Cakes

      Durian Pizzas                  Durian Ice Cream
                                       and Snacks

                                                             10
Durian Harvests
  THE GLOBAL DURIAN MARKET
The global retail market for raw Durian is estimated to be
worth 21 SGD Billion Annually.
This figure excludes the retail value of end products such as
desserts and beverages. Durian's share of end products is
unknown but combined in Asia are worth over 380 SGD
Billion Annually.
Indonesia is the largest consumer of Durian fruit followed
by Malaysia and China. China's fascination with Durians
however has just recently begun with consumption per
person still lower than the rest of the region.

            Durian Global Consumption (KG)

                                             Indonesia

                                             Malaysia

                                             China

                                             Thailand

                                             Vietnam

                                             Others

China imports 2 times more Durian annually
    than oranges and apples combined

                                                            11
Durian Harvests
  GLOBAL DURIAN FACTS

                     CHINA’S DURIAN CONSUMPTION

China simply loves Durian. It is the second most imported
fruit in the country, with imports almost 2x greater than
oranges and apples combined. Durian imports into the
country have grown an astounding 23% p.a. in value since
2006.
Amazingly this is just the beginning. China’s consumption
is still shockingly only 0.21 KG per person and will rise
significantly. Consumption is far below other similar
countries such as Taiwan and Singapore that consume 3 KG
per person because there is not enough to supply to meet
China’s demand.

         Durian Consumption per Person (KG)

  Malaysia   11.00

    Taiwan   3.20

 Singapore   3.18

 Indonesia   2.40

Hong Kong    2.31

  Thailand   1.46

     China   0.21

                                                        12
Durian Harvests
                  CHINA’S DURIAN DEMAND
                  IS SOARING
          Although China’s demand is already extremely high it is
          expected to increase significantly further in the coming
          years driven by:

                   Increased production of F&B products
                   Low and scarce supply of Musang King
                  The Malaysian government promoting exports
                  China’s consumption rising

          China is expected to conservatively import 19 Billion SGD
          Annually worth of Durian by 2030 with additional supplies
          of Musang King desperately needed.

                          China's Future Durian Imports (SGD Millions)

                 25,000

                 20,000
SGD (millions)

                 15,000

                 10,000

                  5,000

                     0
                           2016   2018   2020   2022   2024   2026   2028   2030

                                                                              13
" We can only cater for one
  per cent of China's
  population.
 They adore the Musang King...
 imagine the returns for both
 the traders and Malaysians,
 in general, if we go all out
 in China."
         Ahmad Shabery Cheek
         Malaysia’s Minister of Agriculture
Durian Harvests
   CHINA’S DURIAN CONSUMPTION
China is the worlds largest destination for Durian, importing
292 million KG Annually. This will rise substantially in the
future as China’s consumption increases towards 3 KG per
person to be in line with Taiwan and Singapore.
Musang King demand is so high in China that its sold for up
to an astounding 165 SGD/KG – this is 350% more than in
Malaysia.

                        China’s Durian Consumption per Person (KG)
                        1.20

                        1.00
 Annual KG per Person

                        0.80

                        0.60

                        0.40

                        0.20

                        0.00
                               2002   2006   2010   2014    2016   2020    2026    2030

                               Current Consump�on          Future Forecasted Consump�on

                                                                                          15
DURIAN IS THE MOST IN DEMAND &
     VALUBLE FRUIT IN CHINA

#1 MOST IN DEMAND FRUIT
 Durian imports grew 22.12% last year

#1 MOST VALUABLE FRUIT
   China imported 957 SGD Million
    worth of Durian fruit last year
Durian Harvests
   FORESTRY AS AN ASSET CLASS
 Forestry over the last decade has moved from the
 alternative market space to become more mainstream. It
 has become an asset class of choice for sophisticated
 individuals looking to diversify their portfolios and hedge
 their risk against traditional markets.

                Forestry vs Other Asset Classes
                 (1987-2018, Annual Return)
         Forestry
12%

10%                 S&P500

8%                           Oil
                                     Bonds
6%                                            Gold
4%
                                                       Real
2%                                                     Estate

0%

           Durian Plantation Ownership Highlights

      19.86% Average Annual Net Returns
      SGD 8,958 Average Annual Harvest Proceeds
      Durian is a 19 SGD Billion per year industry and growing
      Existing End User Off-Take Agreements in Place
      Proven & Experienced Management Team
      Complete Transparency and Secure
      Fully Managed “Hands-Free” Project

                                                            17
Durian Harvests Business Model is
100% Vertically Integrated - We Plant,
     Manage, Harvest and Sell
Durian Harvests
                 HARVEST YIELD PROJECTIONS
            The following harvest projection example is based on a 10
            Durian Tree Plantation Ownership Package.

                Trees per Plantation           10 Trees

                Purchase Price                 SGD 45,098

                Harvest Cycle                  20 Years (Annually)

                Total Harvest Net Returns      SGD 179,161

                AVG. Annual Harvest Proceeds   SGD 8,958

                AVG. Annual Net Returns        19.86%

                   Projected Global Durian Demand (2018-2030)
KG (Millions)

                                                                     19
Durian Harvests
  100% HARVEST GUARANTEE
Durian Harvests 100% Fully Guarantees that that if your
Durian trees die or become severely damaged due to the
below noted risks, they will immediately be replaced or
replanted at no additional cost to you.

           The Replacement Warranty provided
               includes the following risks:

    Fire
    Flooding
    Drought
    Lightning Damage
    Hail
    Pests & Disease              All Durian trees are
                              fully covered from these
    Wild Animal Damage
                                    risk events by
    Theft & Vandalism             “BUFFER STOCK”

                                                      20
Durian Harvests
        YOUR ANNUAL RETURNS
   Market prices are currently 35-165 SGD/KG, but we
   GUARANTEE you a minimum price of 13.75 SGD/KG or 10
   USD/KG, whichever is higher. At harvest time however you will
   receive the market price. The below figures are based on the
   minimum guarantee.
           Durian    Durian Gross   Intercrop       Total Gross                     Net
 Year                                                             30% Mgt. Fee              AAR (%)
          Per Tree     Returns    Gross Returns      Returns                      Returns
  1          -           -                -             -              -            -         -
  2          -           -            262             262             79           183      0.41%
  3          -           -            264             265             79           185      0.41%
  4          -           -            267             267             80           187      0.41%
  5         20         4,292          270            4,562          1,369         3,194     7.08%
  6         20         4,335          272            4,608          1,382         3,226     7.15%
  7         30         6,568          275            6,843          2,053         4,790     10.62%
  8         40         8,845          278            9,123          2,737         6,386     14.15%
  9         50        11,167          280            11,448         3,434         8,013     17.76%
 10         60        13,534          283            13,818         4,145         9,673     21.44%
 11         70        15,948          286            16,234         4,870        11,364     25.19%
 12         75        17,258          289            17,547         5,264        12,283     27.22%
 13         80        18,593          292            18,885         5,665        13,219     29.30%
 14         80        18,779          295            19,074         5,722        13,352     29.59%
 15         90        21,337          298            21,635         6,491        15,145     33.57%
 16         90        21,550          301            21,852         6,555        15,296     33.90%
 17         90        21,766          304            22,070         6,621        15,449     34.24%
 18         90        21,984          307            22,291         6,687        15,604     34.58%
 19         90        22,203          310            22,514         6,754        15,760     34.93%
 20         90        22,426          313            22,739         6,822        15,917     35.28%
Total      1,065     250,787         5,150          255,944         76,783       179,161    19.86%

      20 Years Accumulated Net Returns        SGD 179,161

      Return On Invested Capital (ROIC)             397%                   19.86%
      Average Annual Returns (AAR)                 19.86%                  Average Annual
      Average Annual Harvest Proceeds             SGD 8,958
                                                                              Returns

                                                                                                  21
Durian Harvests
  20 YEAR HARVEST OUTLOOK
The following is a summary of the details regarding your
Musang King Durian plantation harvest over your entire 20
Year harvest cycle.

 Value                 Measure                  Comments

Durian Survival                  Your plantation will have a 100% survival
Rate (% of Initial               rate due to the company replanting any
                       100%
Planting)                        trees that die or are damaged at any time
                                 at no additional cost.
Durian Fruit
                      Maximum A Durian tree produces more fruit as it
Yield Per Tree                ages. Each Durian tree is expected to
                       of 90
p.a. (No. of Fruit)           produce up to 90 Durian fruit per year.
                                 Durian fruit size ranges depending on
Weight Per
                       1.5 KG    natural factors. Musang King Durian is
Fruit (KG)
                                 known to range between 1-2KG.
Durian                           Durian Harvests provides a minimum price
                       13.75
Guaranteed Price                 guarantee of 13.75 SGD per KG or 10 USD per
                      SGD/KG
(SGD per KG)                     KG, whichever is higher, for peace of mind.
Durian Market                    The market price of Musang King is up to
                        165
Price (SGD per                   35 SGD per KG in Malaysia and Singapore
KG)                   SGD/KG     and up to 165 SGD per KG in China.

Banana Intercrop                 Durian Harvests provides a minimum price
Guaranteed Price       0.35      guarantee of 0.35 SGD per KG. Banana has
(SGD per KG)          SGD/KG     been intercropped with Durian to provide
                                 clients with additional harvest proceeds.
Inflationary                     A conservative 1% p.a. price increase has
Price Increase           1%      been applied. Malaysia’s inflation rate from
(% p.a.)                         2010-2017 however has been higher at 2.5%.
Harvest Term                     Harvests are expected to begin annually
                      20 Years
(Years)                          from Year 5 up to the end term of 20 Years.
Annual                           Durian Harvest expects an AAR of
Average Return         19.86%    approximately 19.86% over the entire 20
(AAR, %)                         year term.

                                                                               22
Click The Below to watch an explanatory video
   about the SGD 19+ Billion Durian Industry.

           SGD 19+ BILLION/YR
               INDUSTRY

The following links will give you a wealth of information on
  this amazing Durian plantation ownership opportunity.

         Durian Harvests Official Website
         Durian Harvests Facebook
         Plantations International Photo Gallery
         Plantations International LinkedIn
         Frequently Asked Questions - Must Read!

      Financial Markets Go Up and Down,
        but Trees Keep On Growing!

                                                           23
Durian Harvests
  THE HEALTH BENEFITS OF DURIAN
Durian is naturally rich in potassium, dietary fibre, iron,
Vitamin C, and Vitamin B complex. It also contains many
other beneficial compounds and properties.

             Strengthens Bones & Teeth
              Calcium, Potassium and Vitamin B content helps
               maintain healthy teeth and bones and fend off
                 osteoporosis.

                   Improves Digestive System
                    Its high dietary fibre content helps
                     digestion, constipation, bloating,
                       heartburn as well as diarrhea.

                        Enhances Red Blood Cell Formation
                        Folic acid and Iron content helps
                         improve fatigue, headaches and
                          insomnia.

                          Prevents Cardiovascular Disease
                          Presence of Organosulfur
                          Compounds inhibits the formation
                          of blood clots and helps control
                          inflammatory enzymes. This helps
                           prevent heart attacks and strokes.

                            Cancer Fighting
                           High anti-oxidant levels fend off
                           the harmful effects of free radicals
                          which are effective in fighting
                          cancer. Its high dietary fibre content
                          also helps stave off colorectal cancer.

                                                                24
Durian Harvests
     WHY INVEST IN MALAYSIA
Malaysia is strategically located in the heart of Asia. It offers
investors a dynamic, secure and vibrant business
environment. Malaysia has consistently been one of the
fastest growing economies globally. It was one of 13
countries identified by the Commission on Growth and
Development to have recorded average growth 7%+ per
year for over 25 years.
The Malaysian economy is expected to grow by over 5% by
The World Bank in the future. This is significantly higher than
the U.S and Europe which are expected to grow between 1
and 2.5%.

     “Best Country to Invest In”, 1st by BAV Consulting & The
     Wharton School of the University of Pennsylvania, 2017
     “Strength of Investor Protection”, 3rd by The World Economic
     Forum, The Global Competitiveness Report 2017-2018
     “ASEAN Foreign Direct Investment”, 3rd by UOB-ASEAN
     Snapshot May 2018
     “Protecting Minority Investors”, 4th by The World Bank Group –
     Doing Business 2018

            Real GDP Growth Forecast (2019, %)

                                                                 Malaysia
5%

4%
                                     Hong-           Singapore
3%                                            U.S.
                                     Kong
2%                            U.K.
            Germany France
1% Japan

0%

                                                                      26
Plantations International’s Management Team
have                  Years
over

       100            Experience
                      in Sustainable
                      Plantation Management
About
  PLANTATIONS INTERNATIONAL
Plantations International is a multinational plantation and
farm management company whose specialty is providing
sustainable agricultural, forestry, agroforestry and micro
plantation ownership and related services for its clients.
Plantations International has clients ranging from private
individuals to large landholders and institutionals. We put
teamwork, innovation and our passion for creating “Ethical
& Sustainable Capital” at the heart of everything we do.
From the pre-conceptual planning stage to harvesting and
marketing the final products, we strive to go the extra mile
to exceed our client’s’ expectations.

  Plantations International is very proud
to welcome MK Durian Harvests Sdn. Bhd.
     into its plantation product family.

                                                           28
Plantations
  INTERNATIONAL
“We have found a new ‘Gold’
                                            and it’s called Durian!”
                                                               Ahmad Shabery Cheek
                                                               Malaysia’s Minister of Agriculture

    Durian (Musang King)                                                            1

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Disclaimer
MK Durian Harvests Sdn Bhd and its employees, authorized representatives, subsidiaries, introducer(s) and
agents are for the benefit of this entire document collectively referred to as (“Durian Harvests”). Durian
Harvests makes every effort to ensure that the information provided to you (“You”) in this document
pertaining to its Musang King Durian Plantation Ownership Opportunity (“Opportunity”) is accurate, timely
and complete subject to the following:

Durian Harvests does not provide tax, legal, accounting, investment, financial planning, retirement or estate
planning advice or services nor are they licensed with any authority to do so. The content of this document
is for information dissemination purposes only and is intended to assist you in deciding whether you wish to
proceed with further investigation of the Opportunity and does not constitute an offer or solicitation or
contract, or part of one, in relation to the Opportunity and shall not be so construed.

All brands, images and photos used in this document are for example and illustration purposes and remain
the exclusive copyright of their owners, manufactures and distributors, and no form of partnership, agency
or collaboration is either implied, intended or stated (unless otherwise specifically stated). Any information
Durian Harvests provides in this document may be subject to change from time to time. All information in
this document may not be copied, modified, distributed or reproduced in whole or in part without the prior
written consent of Durian Harvests.

                                     MK Durian Harvests Sdn. Bhd.
                                         Unit C-15-5 KL Trillion
                                        No 338 Jalan Tun Razak
                                         50400 Kuala Lumpur
                                               Malaysia

                                           Tel: +60 3 9212 2107
                                     Email: info@durianharvests.com

                                      Growing Your Future
                                          www.DurianHarvests.com
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